Federal Reserve seen taking a step toward March rate increase

FILE PHOTO: Federal Reserve Chair Jerome Powell testifies before the Senate Banking Committee hearing on "The Quarterly CARES Act Report to Congress" on Capitol Hill in Washington, U.S., December 1, 2020. Susan Walsh/Pool via REUTERS/File Photo

NEW YORK: Jerome Powell (pic) and his fellow Federal Reserve (Fed) policymakers are expected to signal their first interest-rate hike since 2018, paving the way for a March move as the United States central bank tries to extinguish red-hot inflation.

Financial markets in the coming week will get another read on US inflationary developments when the government issues employment cost data for the fourth quarter.